Lead time for cakes is 2 days with daily demand of 10 cakes and safety stock of ½ a day. Each container (kanban) holds one cake. What is the correct number of kanbans?

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Answer: 25

Explanation:

Data :

Daily cake demand = 10

Safety stock = 0.5 day

Therefore, safety stock means half of the daily demand = 10 × 0.5 = 5 cakes

Lead time for cakes = 2 days

Amount of cakes for lead time = lead time × daily demand

2 × 10 = 20cakes

Total number of cakes = amount for lead time + amount for safety

20 +5 = 25

One Kanban or cake container only holds one cake.

Therefore, number of Kanban equals number of cakes =25